Articles 447-556: (Good faith and Bad faith of Landowner, Builder, and Owner of Materials)Prepared by SRGCorresponding ArticlesRights of Owner of Land (A)Rights of Builder, Planter or Sower (B)Rights of Owner of Materials (C)

A. Article 447: A vs. C1. A Good Faith C Good Faith

2. A Bad Faith C Good Faith

3. A Good Faith C Bad Faith

4. A Bad Faith C- Bad Faith

Right: Right of appropriation Effect: becomes owner of materials Condition: but pay C for materials value. EXCEPT if materials can be removed without destruction to work made or to the plants sown.

Right: Right of appropriation becomes owner of materials Condition: but pay C for materials value EXCEPT when C exercises Right to Removal then materials still belong to C and still entitled to damages

Collect Consequential Damages collect Necessary Expenses for LAND not house

Refer to No. 1: both in good faith

a) Right of Reimbursement (provided doesnt remove), orb) Limited right of removal (provided no substantial injury caused)

a) Right of Reimbursement & damagesb) Absolute right of removal & damages

a) Loses what is built on As land (Art. 449)b) Damages

Refer to No. 1: both in good faith

B. Article 448: A vs. B(only applies if BOTH are in good faith)

A Good FaithB Good Faith

(does not apply if B is in bad faith)

2 Options of A:a) 1st option: Right of appropriation upon payment of indemnity, reimburse B of necessary, useful and luxious expenses, or

b) 2nd option: Right of compulsory selling of land - to compel B to buy land upon which house is built on.i. Land must not be more than value of improvementsii. If land more than improvement, RENT should be paid

c) Effect of 2nd option: Right of Demolition i. only applicable when B picks Right of Appropriation (2nd option) and fails to pay land.ii. If A choose to pick house he is momentarily indebted and has monetary obligation.

a) If A picks 1st option - Right of Reimbursement of necessary, useful and luxious expenses

b) If A picks 1st option - Right of retention

c) If A picks 2nd option Transfer of Ownership of Improvements to B, transferred only after payment.

(Indemnities to be given:i. Necessary expensesii. Useful expensesiii. Luxurious Expenses)

C. Article 449 452: B in Bad FaithA Good FaithB Bad FaithArt. 449: When B is in bad faith he loses what is built, planted, or sown w/o right to indemnity: (applicable only to growing, not gathered, crops)

Art. 450: When B is in bad faith, A may demand of demolition or compulsory selling

Art. 451: In case of Art. 449 & 450, A is entitled to damages from B

Article 452: B is entitled to reimbursement for the necessary expenses of preservation of land

a) Right of Appropriationb) Right of Compulsory Salec) Right of Demolitiond) Collect sum of money and file ordinary action (monetary obligation)e) Right to Damages

Ibid.

Ibid.

Ibid.

a) Loses what is built, planted or sown without right to indemnity (Art. 449)b) Damagesc) Right of reimbursement - for necessary expenses of preservation of land, not for building.

Ibid.

Ibid.

Ibid.

D. Article 453: A & B in Bad FaithA Bad FaithBC Bad Faith

a) Same as Article 448 (No.2). b) Both be considered in good faith a) Same as Article 448 (No.2). b) Both be considered in good faith

E. Article 454 A Bad FaithB Good Faith

Same as Article 447 (No.1).Pay for value of house & damages Same as Article 447 (No.1).Even is B chooses demolition, A would still be liable for damages

F. Article 455: 3 Parties Involve1. A Good faithBC Bad faith

(Art 455 NOT apply when A makes use of right by Art. 450)

2. C Good Faith

3. C Bad Faith

a) Ask damages from B & Cb) Right of Appropriation w/o payment of indemnity for useful or necessary expenses (art.459)c) Right of Compulsory Sale compel B to pay land w/n land is more than house. d) Right of Demolition at Bs expense

When builder may demand reimbursement from A:If Chas been paid by B, B may demand from A value of the materials and labor.

But reimbursement possible only if A profits by accession not when A constructs or plants himself. There would be unjust enrichment to A.

a) Loses all right to be indemnified. b) Liable for consequential damages (ex. Materials are inferior quality)

Right to Reimbursement:a) Entitled to reimbursement from B, B is primarily liable, (if B pays, he cant ask reimbursement from A)b) In case of insolvency of B, A is subsidiarity liable (bec. of A, C is liable) if A makes use of materials

a) Loses rights of indemnityb) Liable for consequential damages (ex. Materials are inferior quality)

G. Article 456. In cases regulated in the preceding articles, good faith does not necessarily exclude negligence: Good faith may co-exist with negligence. Liability for Negligence, Art. 2176: that negligent person is obliged to pay damages done. If there is no pre-existing contractual relationship between parties, it is quasi-delict (culpa aquiliana)

Bad Faith LANDOWNER: whenever the act was done with his knowledge and without opposition on his part. BUILDER: makes use of the land or materials which he knows belong to another (knowledge of ownership) OWNER OF MATERIALS: allows another to use materials without informing him of the ownership thereof. Good Faith LO: ignorance of acts of the builders, planters or sowers, or he was aware of such acts there was opposition on his part. B: he did not know that he had no right to such land or materials. (ignorance of ownership of another) O: he did not know that another was using his materials; or granting he did, he informed the user of the ownership thereof and made necessary prohibition.